have a situation like today. a cabin on fire, a police officer seemingly hunted down. is that enough to make the emotion of an issue exceed the intelligence of it? >> absolutely. this is a cumulative thing. this might not be exactly fit a round peg into a round hole for the proposals, but it is cumulative. every single day we're seeing more and more of these stories. you'll see people stand up with black arm bands. there will be a sense of emotion around this issue. he won't spend a lot of time on it, but that issue will carry some emotion. >> back to you, wolf. >> we just saw the justices come n n in, not all. several of the republican named justices did not come in. they're not present. john roberts is there, kennedy, the justices nominate by democratic presidents are there as well. we're waiting for the cabinet to be introduced. jake tapper is up on the hill. interesting who is there, who isn't there. we're watching this unfold.

>> one justice that was guaranteed -- oh, here is first lady michelle obama walking in right now. she's guaranteed to get applause from everybody. a bipartisan warm welcome for the first lady of the united states. there she is. she's greeting dr. jill biden, the vice president's wife. dana bash, our chief congressional correspondent, is there. tell us what it's like in the room right now. >> as you said, there is definitely a warm welcome. i'm sitting right over where the republican side is. and not only are the republicans clapping for michelle obama. i can see several of the republican lawmakerses with their cell phones out taking photographs. and they're smiling and clapping. she's definitely somebody who has bipartisan adoration. that's a fair thing to say. >> mr. speaker, the president's cabinet. >> the cabinet is coming in

right now. they just announced them. there is the newly minted secretary of state, former democratic senator of massachusetts, john kerry, now secretary of state, followed by the secretary of defense, leon panet panetta, the attorney general eric holder. all the cabinet will be there this evening except for one member. there's always one member who is designated to be in the bunker should the worst happen. and that member this evening is the departing energy secretary steven chu. so if the worst happens prepare for president steven chu. wolf blitzer, already saying that he welcomes president chu. >> steven chu, the energy secretary, the designated hitter god forbid in case of emergency. this will be one of theirs last official acts including, of

course, the defense secretary leon panetta. momentarily we'll hear paul irving, the house sergeant at arms announce that the president of the united states is coming in with those very famous words, mr. speaker, the president of the united states. then the president will walk in. you see members of the cabinet walking in including dennis mcdonough, the new white house chief of staff, at the top of the screen. he's designated as a member of the cabinet, the white house chief of staff. john mccain, lindsey graham, they're always together. not surprisingly. they're good friends, allies on so many of these issues. this is a moment where so many members of the house and the senate, democrats and republicans, some actually try to sit together to demonstrate that there can be some bipartisan cooperation. we'll see what kind of reaction the president of the united states gets when he utters some of the famous words that he will be saying. there you see, by the way, also behind dennis mcdonough, you see eric holder, the attorney

general right there. but we did see susan rice, the ambassador to the unit, john boehner, the speaker, joe biden, the vice president will be presiding over this session. chris cuomo is watching it. as soon as the members of the cabinet come in, the president will be introduced. >> thank you very much. let's come back to our minds over here. you're giving me ideas for what you want to talk about. we hear from the white house that this speech will be effective because the president is doing what he does best, speaking to the people. how tonight does they try to heal what is an obvious and maybe watershed type of hostility between the congress and the white house by going to the people? can he achieve that? >> no, i don't think he can. the last four years tell us that. the president in excerpts released tonight will say that none of his proposals will add a dime to deficit. this is a president who promised to cut the deficit in half.

republicans are apoplectic. the divide is just steady here. the speaker talked earlier and the governor about the emotions of this gun thing. put that question to the democrat in congress. especially senate democrats up, will mary landrieu, max baucus, will they support a weapons ban. one of the reasons you talk to the american people outside of washington is when you have issues changing votes inside washington. will he be pushing the gun issue, six months, nine month, 12 months from now? >> i think he's going to end up taking half a loaf, i think. >> half a loaf? >> yeah. >> what does that mean? >> half a loaf on guns means that he'll accept universal background checks. >> he won't get -- >> he already had those. >> he'll take that. and he may not get the high capacity magazine proposal that he wants. but the question is what is the president going to be willing to

compromise on, what is he not willing to compromise on? and my big question this evening was the president was trying to be part of a grand bargain on entitlements. let's see what he says tonight about whether that is stoinl table. >> he was going to try to speak to everybody trying to heal. in the second term he appears to have gone a different direction. in the inaugural address, he's being much more aggressive and going after republicans and hammering them every chance he gets. that's why the speech will be aimed at his base, to mobilize his base against republicans. >> he's asking the provocative question i'm going to change the future of entitlements. it will be successful bringing the people to his side? >> i do think he'll talk to the people. his audience is, yes, congress is there, but it is over the top of them. and the question is -- he has said that he will compromise on entitlements. he's put a couple on the table,

but will the republicans compromise on revenues? they've said no way, no how. the president has cut, cut literally $1.5 trillion so far, 2.5 trillion worth of savings. the question is can they come a little furter to make sure there's a grand bargain? because a bargain suggests that both sides are getting something. >> all this intelligence coming at me, i'm absorbing little of it. that makes me like most people. insider talk, how much was cut, the bargain, the loaf, half the loaf, whatever gloria was saying. what do you thinked they need to hear right now? >> all presidents speak to the country. no president would go into a state of the union to talk to the congress because you're trying to move the country, then through the country, get the country to move the congress. second, i agree with david gergen. this president has a very clear strategy. he intends to demonize the republicans and to mobilize his

base, and he intends to gamble that in 2014 he can win the house, keep the senate and have two years, the last two years of his administration fundamentally changing the country. it's a rational gamble on his part. >> how can he just dismiss that it's so -- where he wants to demonize republicans? >> i want you to outline the words where he's demonizing the republicans. he may be demonizing people who be obstructionists and that might be some of those republicans, but if you're an obstructionist that means you're not willing to forge a compromise. >> or it means that you don't want to do anything that's stupid. it's okay to obstruct stupid things. >> but he's compromised on taxes. >> the democratses have already compromised on cuts. both sides have already compromised. the democrat have arguably more on cuts if you look dollar to dollar. >> then the democrat will say --

>> that's ridiculous. >> you can't do that without medicare, social security and the big problems and revenue. neither side will budge. the president can't get republicans to move on revenue and there are a whole burchl of newly elected democrat who say they'd never cut medicare. >> spending is actually secondary to the economy in terms of the american people's concern. >> yes. i'm so happy to hear you say that. >> but i would urge people to listen tonight to see does the president put a single specific major reform of medicare, medicaid or social security or in fact is this essentially a speech that's almost a clinton-esque speech. lots and lots of interesting ideas most of which won't go anywhere but they'll sound good and he'll get a bump for three days? >> representative stockman said he'd be live tweeting tonight. it ap fat tuesday as we move into the lenten catholic season. tonight we'll have binging of

promises, of parades, bad excuses. obviously he's looking for it to be politically charged. but historically speaking, what is the chance for this president to engage the president and start a different dialogue to get away from all the left versus right hostility? >> i think that's one test that we should apply to the speech after we've heard it and does he step up to that or does he, what i think he's going to do, all the signals coming out of the white house, double down on the tone he set in the inaugural, which was a very combative tone. i would like to see him do just the opposite tonight. i happen to think this is his last chance to get a grand bargain. i think he has to change the tone of the conversation and put some things on the table. >> let's get back to wolf. >> the president is about to be introduced by the house sergeant at arms, paul irving, with those very famous words "mr. speaker, the president of the united states." you see everyone standing right now. they're getting ready to hear from the president. he'll walk in, then it will take

a while before he gets up to the podium. jake tapper is up on capitol hill watching all this unfold as well. jake, this is one of those rare moments where you got almost everyone of importance in washington in the same room. >> with the exception of dr. steven chu, the energy secretary. here we're expecting the announcement, the famous words you were talking about. >> hold on a second. here he comes. >> mr. speaker, the president of the united states.

>> you see the president. he smiles. all smiles. he's happy as he meets members of the house and senate, some have been waiting hours and hours for a prime position. he's being followed -- you see eric cantor, harry reid, the senate majority leader. they're part of the official escort committee who are there to bring the president in to the chamber. it will take him a while to get through this crowd. he's shaking hands with everyone he sees there. as i said, a lot of these people have been waiting a long time just to get a shot with the president on this important historic night. band-aided by the constitution that he should provide a report to the nation about the state of the union. the president will tell us what he thinks the state of the union is momentarily. jake, you and i have seen a lot

of these state of the union addresses. this is an important one because it kicks off the president's second term. >> that's right. he will set the table for his second term. he hopes he will, anyway. i do find it so interesting that there are members of the house and senate that literally sit in those seats in the house chamber for hours upon hours just for this moment, so they can shake the president's hand. it's often the same members of congress, congressman eliot engel, the man with the mustache we saw a second ago, always sitting in the aisle. of course there are others in that chamber, wolf, as you know, who are there to convey a different sort of message, not one of wanting to meet the president, but perhaps illustrating a policy point. we have, for instance, in the chamber sitting with the first lady, the parents of hadiya pendleton, the young lady who was shot the other day. we have other. there's the mother of hadiya

pendleton. others who were in sandy hook, victims of sandy hook. a teacher sitting next to the second lady. caitlin who was a -- or is a first grade teacher at sandy hook elementary school. dana bash in the chamber, you have been studying the relationship between president obama and house speaker john boehner, one that's had its ups and downs. in the last couple days some fiery rhetoric from speaker boehner. >> the president just made a point to reach out his hand and shake his old rival's john mccain's hand, as he was making his way to the podium here. yes, on the issue of john boehner, i was at breakfast with him this morning. he was quite gruff on the president. he said he doesn't have the guts or the courage to stand up to the liberals in his own party in order to make a deal on the big

issues, particularly deficit reduction. i talked to him later in the day and said, are you calling the president a wimp? he said, no, i just don't think he's able to do what it takes to stand up to them. that's the kind of relationship or frankly nonrelationship that these two men who will be sitting a foot away from each other have. >> the president having just greeted all the members of the supreme court in attendance, including the two that he appointed elena sotomayor and kagan. there's wolf bliter at cnn studios, he's almost at the point -- >> these are member s of the joint chiefs, diplomatic corps, cabinet and the senior white house staff there as well. you see the president. he's about ready to go up to that podium. jessica kyellin has been watching. what do you think about what's

going on? >> this reminds me of our -- we always describe the president as a cool, detached man. that's how the media likes to describe him. when you see him work the crowd, he likes to say i enjoy having a good time. you are reminded he's good at it. he'll work a room when he wants to. he just doesn't like doing it all that often. >> hold on. the speaker is going to introduce the president. let's listen in as the formalities continue. >> thank you. thank you. thank you.

thank you. >> members of congress, i have the high privilege and distinct honor of presenting to you the president of the united states. >> thank you. thank you. thank you. thank you very much. thank you so much. thank you. thank you very much. thank you. mr. speaker, mr. vice president,

members of congress, fellow americans, 51 years ago john f. kennedy declared to this chamber that the constitution makes us not rivals for power but partners for progress. it is my task, he said, to report the state of the union. to improve it is the task of us all. tonight, thanks to the grit and determination of the american people, there is much progress to report. after a decade of grinding war, our brave men and women in uniform are coming home.

after years of grueling recession, our businesses have created over 6 million new jobs. we buy more american cars than we have in five years and less foreign oil than we have in 20. our housing market is healing. our stock market is rebounding. and consumers, patients and homeowners enjoy stronger protections than ever before. so together, we have cleared away the rubble of crisis. and we can say with renewed

confidence that the state of our union is stronger. but we gather here knowing that there are millions of americans whose hard work and dedication have not yet been rewarded. our economy's adding jobs, but too many people still can't find full-time employment. corporate profits have skyrocketed to all-time highs, but for more than a decade, wages and incomes have barely budged. it is our generation's task then to reignite the true engine of america's economic growth. a rising, thriving middle class.

it is -- it is our unfinished task to restore the basic bargain that built this country. the idea that if you work hard and meet your responsibilities, you can get ahead. no matter where you come from, no matter what you look like or who you love. it is our unfinished task to make sure that this government works on behalf of the many and not just the few. that it encourages free enterprise, rewards individualization and every child across this great nation. the american people don't expect government to solve every problem. they don't expect those of us in this chamber to agree on every issue.

but they do expect us to put the nation's interests before party. they do expect us to forge reasonable compromise where we can for they know that america moves forward only when we do so together and that the responsibility of improving this union remains the task of us all. our work must begin by making some basic decisions about our budget, decisions that will have a huge impact on the strength of our recovery. over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion.

mostly through spending cuts but also by raising tax rates on the wealthiest 1% of americans. as a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances. now, we need to finish the job. and the question is how. in 2011 congress passed a law saying that if both parties couldn't agree on a plan to reach our deficit goal, about a trillion dollars worth of budget cuts would automatically go into effect this year. these sudden, harsh, arbitrary cuts would jeopardize our military readiness, they'd devastate priorities like education and energy and medical research. they would certainly slow our recovery and cost us hundreds of thousands of jobs.

that's why democrats, republicans, business leaders and economists have already said that these cuts known here in washington as the sequester are a really bad idea. now, some in congress have proposed preventing only the defense cuts by making even bigger cuts to things like education and job training, medicare and social security benefits. that idea is even worse. yes, the biggest driver of our long-term debt is the rising cost of health care for an aging population. and those of us who care deeply about programs like medicare

must embrace the need for modest reforms. otherwise our retirement programs will crowd out the investments we need for our children and jeopardize the promise of a secure retirement for future generations. we can't ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and the most powerful. we won't grow the middle class simply by shifting the cost of health care or college on families that are already struggling or by forcing communities to lay off more teachers, more cops and more firefighters. most americans, democrats, republicans and independents, understand that we can't just cut our way to prosperity. they know that broad-based economic growth requires a balanced approach to deficit reduction with spending cuts and

revenue. and with everybody doing their fair share. and that's the approach i offer tonight. on medicare, i'm prepared to enact reforms that will achieve the same amount of healthcare savings by the begin tofg nenin next decade as those prepared by the simpson/bowles. already it's helping to slow the growth of health care costs and the reforms i'm proposing go even further. we'll reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest seniors. we'll bring down costs by changing the way our government pays for medicare because our medical bill shouldn't be based on the number of tests ordered or days spent in the hospital. they should be based on the quality of care that our seniors receive.

and i am open to additional reforms from both parties so long as they don't violate the guarantee of a secure retirement. our government shouldn't make promises we cannot keep, but we must keep the promises we've already made. to hit the rest of our deficit reduction target, we should do what leaders in both parties have already suggested and save hundreds of billions of dollars by getting rid of tax loophole and deductions for the well off and the well connected. after all, why would we choose to make deeper cuts to education and medicare just to protect

special interest tax breaks? how is that fair? why isn't the deficit reduction is a big emergency justifying making cuts in social security benefits but not closing some loopholes? how does that promote growth? now is our best chance for bipartisan comprehensive tax reform that encourages job creation and helps bring down the deficit. we can get this done. the american people deserve a tax code that helps small businesses spend less time filling out complicated forms and more time expanding and hiring. a tax code that ensures billionaire with high powered

accountants can't play a lower rate than their secretaries. incentive to move job overseas and allows tax rates for manufacturers who are creating jobs right here in the united states of america. that's what tax form can deliver. that's what we can do together. i realize that tax reform and entitlement reform will not be easy. the politics will be hard for both sides. none of us will get a hundred per se percent of what we want but the alternative will cost us jobs, hurt our economy, visit hardship on millions of hardworking americans. so let's set party interests aside and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future, and let's do it without the

brinksmanship that stresses consumers and scares off investors. the greatest nation on earth -- the greatest nation on earth cannot keep conducting its business by drifting from one manufactured crisis to the next. we can't do it. let's agree. let's agree right here, right now, to keep the people's government open and pay our bills on time. and always uphold the full faith and credit of the united states of america. the american people have worked too hard for too long rebuilding from one crisis to see their elected officials cause another.

now, most of us agree that a plan to reduce the deficit must be part of our agenda. but let's be clear. deficit reduction alone is not an economic plan. a growing economy that creates good, middle class jobs, that must be the north star that guides our efforts. every day we should ask ourselves three questions as a nation. how do we attract more jobs to our shores? how do we equip our people with the skills they need to get those jobs? and how do we make sure that hard work leads to a decent living? a year and a half ago i put forward an american jobs act that independent economists said would create more than 1 million new jobs, and i thank the last

congress for passing some of that agenda. i urge this congress to pass the rest. but tonight i'll lay out additional proposals that are fully paid for and fully consistent with the budget framework both parties agreed to just 18 months ago. let me repeat. nothing i'm proposing tonight should increase our deficit by a single dime. it is not a bigger government we need but a smarter government that sets priorities and invests in broad-based growth. that's what we should be looking for. our first priority is making america a magnet for new jobs in manufacturing. after shedding jobs for more than ten years, our manufacturers have added 5,000

jobs over the past three. caterpillar is bringing jobs back from japan, ford is bringing jobs back from mexico, this year apple will start making macs in america again. there are things we can do right now to accelerate this trend. last year we created our first manufacturing innovation institute in youngstown, ohio. a once shuttered warehouse is now a state of the art lab where new workers are mastering the 3-d printing that has the capability to manufacture just about everything. there's no reason this can't happen in other towns. tonight i'm announcing the launch of three more of these manufacturing hubs businesses will partner with the department of defense and energy to turn over regions left behind by globalization into high tech centers for jobs. i ask this congress to help create a network of 15 of these

hubs and guarantee that the next revolution in manufacturing is made right here in america. we can get that done. now, if we want to make the best products, we also have to invest in the best ideas. every dollar we invested to map the human genome returned $140 to our economy, every dollar. today our scientists are mapping the human brain to unlock the answers to alzheimer's. they're developing drugs to regenerate damaged organs, devising new materials to make batteries ten times more powerful. now is not the time to gut these job-creating investments in science and innovation. now is the time to reach a level of research and development not seen since the height of the

space race. we need to make those investments. today no area holds more promise than our investments in american energy. after years of talking about it, we're finally poised to control our own energy future. we produce more oil at home than we have in 15 years. we have doubled the distance our cars will go on a gallon of gas and the amount of renewable energy we generate from sources like wind and solar with ten of thousands of good american jobs to show for it. we produce more natural gas than ever before. and nearly everyone's energy bill is lower because of it. and over the last four years our missions of the dangerous carbon pollution that threatens our planet have actually fallen.

but for the sake of our children and our future, we must do more to combat climate change. now, it's true that no single event makes a trend. but the fact is the 12 hottest years on record have all come in the last 15. heat waves, droughts, wildfires, floods, all are now more frequent and more intense. we can choose to believe that superstorm sandy and the most severe drought in decades and the worst wildfires some states have all seen were just a freak coincidence or we can choose to believe in the overwhelming

judgment of science and act before it's too late. now, the good news is we can make meaningful progress on this issue while driving strong economic growth. i urge this congress to get together, pursue a bipartisan market-based solution to climate change like the one john mccain and joe lieberman worked together on a few years ago, but if congress won't act soon to protect future generations, i will. i will direct -- i will direct my cabinet to come up with executive actions we can take now and in the future to reduce pollution, prepare our communities for the consequences of climate change and speed the transition to more sustainable sources of energy. and four years ago other countries dominated the clean energy market and the jobs that came with it. we've begun to change that.

last year wind energy added nearly half of all new power capacity in america. so let's generate even more. solar energy gets cheaper by the year. let's drive down costs even further. as long as countries like china keep going all-in on clean energy, so must we. in the meantime, the natural gas boom has led to cleaner power and greater energy independence. we need to encourage that. that's why my administration will keep cutting red tape and speeding up new oil and gas permits. that's got to be part of an all of the above plan, but i also want to work with this congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and our water. in fact much of our newfound energy is drawn from airs and lands that we the public own together.

o so tonight i propose that we use them to fund an energy security trust that will shift our cars and trucks off oil for good. if a nonpartisan coalition of ceos and retired generals and admirals can get behind this idea, then so can we. let's take their advice and free our families and businesses from the painful spikes in gas prices we put up with for far too long. i'm also issuing a new goal for america. let's cut in half the energy wasted by our homes and businesses in the next 20 years. we'll work with the states to do it. those states with the best ideas to create jobs and lower energy bills by constructing more energy-efficient buildings will receive federal support to help make that happen. america's energy sector is just one part of an aging infrastructure badly in need of repair.

ask any ceo where they'd rather locate and hire, a country with deteriorating roads an bridges or one with high speed rail and internet, high-tech schools, self-healing power grids. the ceo of siemens america who brought new job to north carolina said if we upgrade our infrastructure, they'll bring even more jobs. that's the attitude of companies around the world. i know you want these job creating projects in your city. i've seen all those ribbon cuttings. so tonight, i propose a fix it first program to put people to work as soon as possible on aur most urgent repairs like the nearly 70,000 structurally deficient bridges across the country.

and to make sure taxpayers don't shoulder the whole burden, i'm also proposing a partnership to rebuild america that attracts private capital to upgrade what our businesses need most, modern ports to move our goods, modern pipelines to withstand a form, modern schools worthy of our children. let's prove there's no better place to do business than here in the united states of america and let's start right away. we can get this done. part of our rebuilding effort must also involve our housing sector. the good news is our housing market is finally healing from the collapse of 2007. home prices are rising at the fastest pace in six years. home purchases are up nearly 50%. and construction is expanding again, but even with mortgage rates near a 50-year low, too

many families with solid credit who want to buy a home are being rejected. too many families who never missed a payment and want to ref refinance are being told no. that's holding our entire economy back. we need to fix it. right now there's a bill in the congress that would give every responsible homeowner in america the chance to save $3,000 a year by refinancing at today's rates. democrats and republicans have supported it before. so what are we waiting for? take a vote and send me that bill. why would we be against that? why would that be a partisan issue? helping folks refinance? right now overlapping

regulations keep responsible young families from buying their first home. what's holding us back? let's streamline the process and help our economy grow. these initiatives in manufacturing, energy, infrastructure, housing, all these things will help entrepreneurs and small business owners expand and create new jobs. but none of it will matter unless we also equip our citizens with the skills and training to fill those jobs. and that has to start at the earliest possible age. you know, study after study shows that the sooner a child begins learning, the better he or she does down the road. but today fewer than three in ten 4-year-olds are enrolled in a high quality preschool program. most middle class parents can't afford a few hundred bucks a

week for private preschool. and for poor kids who need help the most, this lack of access to preschool education can shadow them for the rest of their lives. tonight i propose working with states to make high quality preschool available to every single child in america. that's something we should be able to do. every dollar we invest in high quality early childhood education can save more than $7 later on. by boosting graduation rates, reducing teen pregnancy, even reducing violent crime. in states that make it a priority to educate our youngest children, like georgia, or

oklahoma, studies show students grow up more likely to read and do math at grade level, graduate high school, hold a job. form more stable families of their own. we know this works. so let's do what works and make sure none of our children start the race of life already behind. let's give our kids that chance. let's also make sure that a high school diploma puts our kids on the path to a good job. right now countries like germany focus on graduating their high school students with the equivalent of a technical degree from one of our community colleges. those german kid, they're ready for a job when they graduate high school. they've been trained for the jobs that are there. now at schools like p-tech in

brooklyn arc collaboration between new york public schools and city university of new york and ibm, students will graduate with a high school diploma and an associate's degree in computers or engineering. we need to give every american student opportunities like this. and four years ago -- four years ago we started race to the top. a competition that convinced almost every state to develop smarter curricula and higher standards. all for about 1% of what we spent on education each year. tonight i'm announcing a new challenge, to redesign america's high schools so they better equip graduates for the demands of a high-tech economy. and we'll reward schools that develop new partnerships with colleges and employers and create classes that focus on science, technology, engineering and math. the skills today's employers are

lo looking for to fill the jobs that are there right now and will be there in the future. even with better high schools, most young people will need some higher education. it's a simple fact. the more education you've got, the more likely you are to have a good job and work your way into the middle class. but today's skyrocketing costs price too many young people out of a higher education or saddle them with unsustainable debt. through tax credits, grants and better loans, we've made college more affordable for millions of students and families over the last few years. taxpayers can't keep on subsidizing higher and higher costs for higher education. colleges must do their part to keep costs down. and it's our job to make sure that they do. so tonight, i ask congress to change the higher education act

so that affordability and value are included in determining which colleges receive certain types of federal aid. and tomorrow my administration will release a new college scorecard that parents and students can use to compare schools based on a simple criteria, where you can get the most bang for your educational buck. now, to grow our middle class, our citizens have to have access to the education and training that today's jobs require. but we also have to make sure that america remains a place where everyone who's willing to work, everybody who's willing to work hard has the chance to get ahead. our economy is stronger when we harness the talents and ingenuity of striving hopeful immigrants. right now leaders from the business, labor, law enforcement, faith communities, they all agree that the time has

come to pass comprehensive immigration reform. now is the time to do it. now is the time to get done. now is the time to get done. real reform means stronger border security, and we can build on the progress my administration has already made, putting more boots on the southern border than at any time in our history. and reducing illegal crossings to their lowest levels in 40 years. real reform means establishing a responsible pathway to earn citizenship, a path that includes passing a background check, paying taxes in a meaningful penalty, learning english and going to the back of the line behind the folks trying to come here legally.

and real fixing the legal immigration system, to attract the highly skilled entrepreneurs that will help to grow our jobs and our economy. in other words, we know what needs to be done. and as we speak, bipartisan groups in both chambers are working diligently to draft a bill, and i applaud their efforts. let's get this done. send me a comprehensive immigration reform bill in the next few months, and i will sign it right away, and america will be better for it. let's get it done. let's get done.

but we can't stop there. we know our economy is stronger when our wives, our mother, our daughters can live their lives free from discrimination in the workplace and free from the fear of domestic violence. today the senate passed the violence against women's act that joe biden originally wrote almost 20 years ago and i now urge the house to do the same. good job, joe. and i ask this congress to declare that women should earn a living equal to their efforts and finally pass the paycheck fairness act this year.

we know our economy is strong with her we reward an honest day's work with honest wages. today a full time worker making the minimum wage earns $14,500 a year even with the tax relief we put in place. a family with two kids that earns minimum wage still lives below the poverty line. that's wrong. that's why i sense the last time this congress raised the minimum wage 19 states have chosen to bump theirs even higher. tonight let's declare that in the wealthiest nation on earth no one who works full time should have to live in poverty and raise the federal minimum wage to $9 an hour. we should be able to get that done.

this single step would raise the incomes of many i will i don't knows of working families. it could mean the difference between groceries or the food bank, rent or eviction, scraping by or finally getting ahead. for businesses across the country it would mean customers with more money in their pockets. and a whole lot of folks out there would probably need less help from government. in fact, working folks shouldn't have to wait year after year for the minimum wage to go up while ceo pay has never been higher. here an idea that governor romney and i actually agreed on last year. let's tie the minimum wage to the cost of living so it finally becomes a wage you can live on. tonight let's also recognize that there are communities in this country where no matter how

hard you work, it is virtuely impossible to get ahead. factory towns decimated from years of plants packing up, i know escapable pockets of poverty, urban and rural, where young adults are still fighting for their first job. america is not a place where the chance of birth or circumstance should decide our destiny. that's why we need to build new ladders of opportunity into the middle class for all who are willing to climb them. let's offer incentives to companies to hire american that is got what it takes to fill the job opening but have been out of work so long no one will give them a chance anymore. put people back to work rebuilding vacant homes in rundown neighborhoods and this year my administration will begin to partner with 20 of the hardest hit towns in america to get these communities back on their feet. we'll work with local leaders to target resources and public safety and education and housing. we'll give new tax credits to

businesses that hire and invest and we'll work to strengthen families by removing the financial deterrents to marriage for low income couples and do more to encourage fatherhood. what makes you a man isn't the ability to conceive a child, it is having the courage to raise one. we want to encourage that. we want to help that. stronger families, stronger communities, a stronger america. it is this kind of prosperity, broad, shared, built on a thriving middle class that has always been the source of our progress at home. it is also the foundation of our power and influence throughout the world. tonight we stand united in

saluting the troops and civilians who sacrifice every day to protect us. because of them we can say with confidence that america will complete its mission in afghanistan and achieve our objective of defeating the core of al qaeda. already we have brought home 33,000 of our brave servicemen and women. this spring our forces will move into a support role while afghan security forces take the lead. tonight i can announce that over the next year another 34,000 american troops will come home from afghanistan. this drawdown will continue and by the end of next year our war in afghanistan will be over.

beyond 2014 america's commitment to a unified and sovereign afghanistan will endure but the nature of our commitment will change. we're negotiating an agreement with the afghan government that focuses on two missions, training and equipping afghan forces so that the country does not again slip into chaos and counter-terrorism efforts that allow us to pursue the remnants of al qaeda and their affiliates. today the organization that attacked us on 9/11 is a shadow of its former self.

it is true, different al qaeda affiliates and extremist groups have emerged from the arabian peninsula to africa and the threat these groups pose is evolving, but to meet this threat we don't need to send tens of thousands of our sons and daughters abroad or occupy other nations. instead, we'll need to help countries like yemen, libya, and somalia, provide for their own security and help allies who take the fight to terrorists as we have in mali and where necessary through a range of capabilities we will continue to take direct action against those terrorists who pose the gravest threat to americans. now, as we do, we must enlist our values in the fight. that's why my administration has worked tirelessly to forge a durable, legal, and policy framework to guide our

counter-terrorism efforts. throughout we have kept congress fully informed of our efforts. i recognize that in our democracy no one should just take my word for it, that we're doing things the right way. so in the months ahead i will continue to engage congress to ensure not only that our targeting, detention, and prosecution of terrorists remains consistent with our laws and system of checks and balances but that our efforts are even more transparent to the american people and to the world. of course our challenges don't end with al qaeda. america will continue to lead the effort to prevent the spread of the world's most dangerous weapons. the regime in north korea must know they will only achieve security and prosperity by meeting their international obligations. provocations of the sort we saw last night will only further isolate them. as we stand by our allies,

strengthen our own missile defense and lead the world in taking firm action in response to these threats. likewise the leaders of iran must recognize now is the time for a diplomatic solution because the coalition stands united in demanding they meet their obligations and we will do what is necessary to prevent them from getting a nuclear weapon. at the same time we'll engage russia to seek further reductions in our nuclear arsenals and continue leading the global effort to secure nuclear materials that could fall into the wrong hands. because our ability to influence others depends on our willingness to lead and meet our obligations. america must also face the rapidly growing threat from

cyber attacks. now, we know hackers steal people's identities and infiltrate private e-mails. we know foreign countries and companies swipe our corporate secrets. now our enemies are also seeking the ability to sabotage our power grid. our financial institutions, our air traffic control systems. we cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy. that's why earlier today i signed a new executive order that will strengthen our cyber defenses by increasing information sharing and developing standards to protect our national security, our jobs and our privacy. now congress must act as well bypassing legislation to give our government a greater capacity to secure our networks

and deter attacks. this is something we should be able to get done on a bipartisan basis. even as we protect our people, we should remember that today's world presents not just dangers, not just threats, it presents opportunities to boost american exports, support american jobs, and level the playing field in the growing markets of asia. we sbebd to complete negotiations on a transpacific partnership and we'll have a transatlantic trade and investment partnership with the european union because trade that is fair and free across the atlantic supports millions of good-paying american jobs. we also know that progress in

the most impoverished parts of our world enriches us all. not only because it creates new markets, more stable order in certain regions of the world but also because it is the right thing to do. in many places people live on little more than a dollar a day. so the united states will join with our allies to eradicate such extreme poverty in the next two decades by connecting more people to the global economy, by empowering women, by giving our young and brightest minds new opportunities to serve and helping communities to feed and power and educate themselves. by saving the world's children from preventible deaths and by realizing the promise of an aids free generation which is within our reach. you see, america must remain a

beacon to all who seek freedom during this period of historic change. i saw the power of hope last year in rangoon and berm awhen suchi welcomed americans into the home where thousands were waving american flags including a man saying justice and law in the united states. i want our country to be like that. in defense of freedom, we'll remain the anchor of strong alliances from the americas to africa, from europe to asia, and in the middle east we will stand with citizens as they demand their universal rights and support stable transitions to democracy. we know the process will be

messy. we cannot presume to dictate the course of change in countries like egypt, but we can and will insist on respect for the fundamental rights of all people. we'll keep the pressure on a syrian regime that murdered its own people and support opposition leaders that respect the rights of every syrian, and we will stand steadfast with israel in pursuit of security and a lasting peace. these are the messages i will deliver when i travel to the middle east next month. all this work depends on the courage and sacrifice of those who serve in dangerous places at

great personal risk. our diplomats, our intelligence officers, and the men and women of the united states armed forces. as long as i am commander in chief we will do whatever we must to protect those who serve their country abroad and we will maintain the best military the world has ever known. we'll invest in new capabilities even as we reduce waste and more time spending. we will ensure equal treatment for all service members and equal benefits for their families, gay and straight. we will draw upon the courage and skills of our sisters and

daughters and moms because women have proven under fire that they are ready for combat. we will keep faith with our veterans, investing in world class care including mental health care for our wounded warrio warriors. supporting our military families, giving our veterans the benefits and education and job opportunities that they have earned, and i want to thank my wife michelle and dr. jill biden for their continued dedication to serving our military families as well as they have served us. thank you, honey. thank you, jill.

defending our freedom, though, is not just the job of our military alone. we must all do our part to make sure our god-given rights are protected here at home. that includes one of the most fundamental rights of a democracy, the right to vote. when any american, no matter where they live or what their party, are denied that right because they can't afford to wait for five or six or seven hours just to cast their ballot, we are betraying our ideals. so tonight i am announcing a

non-partisan commission to improve the voting experience in america and it definitely needs improvement. i am asking two long time experts in the field who by the way recently served as the top attorneys for my campaign and for governor romney's campaign to lead it. we can fix this. and we will. the american people demand it and so does our democracy. of course what i have said tonight matters little if we don't come together to protect our most precious resource, our children. it has been two months since newtown.

i know this is not the first time this country has debated how to reduce gun violence. this time it is different. overwhelming majorities of americans, americans who believe in the second amendment have come together around common sense reform like background checks that will make it harder for criminals to get their hands on a gun. senators of both parties are working together on tough new laws to prevent anyone from buying guns for resale to criminals. police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets because these police chiefs are tired of seeing their guys and gals being out gunned. each of these proposals deserves a vote in congress.

if you want to vote no, that's your choice. these proposals deserve a vote. because in the two months since newtown more than 1,000 birthdays, graduations, anniversaries, have been stolen from our lives by a bullet from a gun. more than 1,000. one of those we lost was a young girl named hideah pendleton. she was 15 years old. she loved fig newtons and lip gloss. she was so good to her friends

they all thought she was their best friend. just three weeks ago she was here in washington with her classmates performing for her country at my inauguration. a week later she was shot and killed in a chicago park after school. just a mile away from my house. hidea's parents are in this chamber tonight along with more two dozen americans whose lives have been torn apart by gun violence. they deserve a vote. they deserve a vote. they deserve a vote. gabby giffords deserves a vote.

the families of newtown deserve a vote. the families of aurora deserve a vote. the families of oak creek and tucson and blacksburg and the countless other communities ripped open by gun violence deserve a simple vote. they deserve a simple vote. our actions will not prevent every senseless act of violence in this country. in fact, no laws, no initiatives, no administrative acts will perfectly solve all of the challenges i have outlined tonight. we were never sent here to be perfect. we were sent here to make what difference we can.

to secure this nation, expand opportunities, uphold our ideals through the hard, often frustrating but absolutely necessary work of self governme government. we were sent here to look out for our fellow americans, the same way they look out for one another. every single day, usually without fanfare all across this country. we should follow their example. we should follow the example of a new york city nurse named men ch hu sanchez. when hurricane sandy plunged her hospital into darkness she wasn't thinking about how her own home was faring. her mind was on the 20 precious newborns in her care and the rescue plan she devised that kept them all safe. we should follow the example of a north miami woman named

desaline victor. when she arrived at her polling play she was told the wait to vote might be six hours. as time ticked by, her concern was not with her tired body or aching feet, but whether folks like her would get to have their say. hour after hour a throng of people stayed in line to support her because desiline is 102 years old and they erupted in cheers when she finally put on a sticker that read i voted. desili

desiline, we should follow the example of a police officer named brian murphy when a gunman opened fire on a seik temple in wisconsin brian was the first to arrive and he did not consider his own safety, he fought back until help arrived and ordered his fellow officers to protect the safety of the fellow americans worshiping inside. even as he lay bleeding from 12 bullet wounds. when asked how he did that, brian said that's just the way we're made. that's just the way we're made. we may do different jobs and wear different uniforms and hold different views than the person beside us, but as americans we all share the same proud title.

we are citizens. it is a word that doesn't just describe our nationality or legal status. it describes the way we're made. it describes what we believe. it captures the enduring idea that this country only works when we accept certain obligations to one another and future generations, that our rights are wrapped up in the rights of others and that well into our third century as a nation it remains the task of us all as citizens of these united states to be the authors of the next great chapter of our american story. thank you. god bless you and god bless these united states of america. >> the president of the united states delivering a wide ranging more than one hour state of the union address on a whole host of

domestic and national security issues, the president now will make his way out of the chamber. once he does a few minutes after that we'll get the republican response from senator marco rubio of florida and we're also following breaking news out of california right now. we'll get back to the president's state of the union address but authorities are now telling cnn that the fugitive ex policeman christopher dorner is dead. anderson cooper is joining us with the latest. >> wolf, it has been a dramatic end to a dramatic manhunt. a body has been removed from a burning cabin outside of big bear, kaltz. authorities say it is the body of former lapd officer christopher dorner thought to be hold up after gun fight with that left one deputy dead. the cabin was on fire after a tactical operation and there is still a lot we do not know and we're learning more as each minute passes. roadways are being cleared to

let fire fighters and we're showing you taped pictures because it is simply too dark now to get a good over head vantage point what is go on earlier police got a report of a carjacking and the victim said the suspect looked like dorner and the suspect fled into the woosds, barricaded himself inside that cabin that you're seeing on fire and gun fire was exchanged and during that gun battle one officer, a deputy sheriff, was killed, another was injured, airlifted to a hospital, and that second officer underwent surgery, is expected to survive, and according to the san bernadino sheriff's department. we're anticipating a press conference from the sheriff's department and we'll monitor that and bring you the details. authorities are telling us the body of christopher dorner has been removed from the burned cabin outside of big bear. you saw folks getting ready for a press conference. we're monitoring that. as you know this is an altercation and confrontation that has gone on for several

hours beginning with that stolen vehicle, also early reports according to the l.a. times for the last several days dorner had been hold up in another cabin before he allegedly took a couple hostage and that's one of the reasons we had not heard or authorities had not heard or seen any activity on his part over the last several days until today when that dramatic gun battle occurred at a check point when the report went out that a vehicle had been stolen and that vehicle was found about 27 miles from the place where it had been allegedly carjacked and then there was the gun fight between the suspect, christopher dorner, and also deputies from the fish and game department. he then retreated to another cabin and apparently there was nobody inside the cabin, no hostages inside the cabin, and that's when authorities started to fire teargas and moved in and the headline aat this hour christopher dorner is dead. >> we're getting that from multiple sources, anderson,

although the police law enforcement have not yet officially confirmed that body is that much christopher dorner, is that right. >> that's correct, and they say the identification will take anywhere from hours to days. we're waiting on word. we should have multiple press conferences throughout the night and we'll bring those to you of course. >> we'll of course have the news conferences and we'll bring all of the latest on this massive manhunt now come to an end in southern california, but let's get back to our analysis right now of the president's state of the union address, a major address with lots of new initiatives, lots to dissect. chris cuomo is standing by. >> thank you, wolf. let me start with you, john king, speech just about an hour, chockful of hopefully something for everybody. were you pleasantly surprised? >> i was not surprised at the long laundry list and that's not a criticism of the president that's a bipartisan tradition and he knows the first state of the union and the second term probably have the biggest audience and before we get into the political environment of 2014 and 2016 will begin before we know it. i thought it was very powerful at the end with the gun stories, the personal stories, the people

in the box with the first lady and will it change in i votes? we won't know that for weeks if not months. he ended on a high note. >> may not have changed votes. what about minds and hearts of the american people? david, you said you thought he would be hostile and angry, not much. >> i thought he was surprisingly even handed and talked in a bipartisan way. if you look at the substance of it, of course, republicans will challenge that, but nonetheless i thought it was an audacious speech. he embraced old-fashioned liberalism in a way we haven't seen in a long time. bill clinton said the era of big government is over and tonight it seemed to be coming back. >> was it the full loaf? >> i think it was every slice the president wanted not to extend that metaphor too far. i think he set a tone here that his advisers really wanted which is the american public doesn't

expect us to agree on everything. they do want us to try to get our work done. that was something we heard in the inaugural and this was kind of the second part of it, but to me i am still asking some questions, for example, a program for universal prekindergarten. how much is that going to cost? we don't know. >> you say it would be deficit neutral, though? >> he did say. where is the money coming from? question minimum wage, you know. this is an increase in the minimum wage, has not kept track with inflation. how are we going to pay for these things? what's the price tag? i don't know the answer to those questions >> gloria is saying light on detail and not that unusual for a speech of this kind. >> not unusual. >> a point of observation, first. a lot of this is going to be about how it plays for both parties and that partisan balance. as former speaker you are sitting behind the president and people are standing up and clapping. tough position to be in as the speaker. you're not supposed to stand. you don't want to look the wrong

way. how do you handle that there? >> it is much easier if it is the president of your own party. >> having a great time. i am saying in this situation. >> i think for both parties, you know, whether a speaker pelosi dealing with george w. bush or speaker boehner dealing with president obama, you are trapped because you can't be overtly hostile because people back home know you're the host. this is a national appearance, not a political appearance. on the other hand, you can't applaud too much or your own base will beat you up. >> did you have a semi happy face that you went to? >> clinton was a totally different character. clinton was fun. the first time he walked in and he handed me this envelope and i opened it up and it said i resign, william jefferson clinton. he said, oh, no, i wasn't supposed to give you that, give it back to me and that was the opening of the first state of the union i did as speaker of the house. >> let me open it up to both of you, beginning with this please, governor.

do you believe the president moved the ball forward for himself and his party tonight? >> first of all, i was writing down the initiatives. other than raising the minimum wage, there is not a single thing on here that republicans haven't advocated for in the past whether it is manufacturing, whether it is skills development, making sure that community colleges train kids, high school, higher standards for colleges. all of that. >> mr. speaker, your party is behind it? >> what's fun about this, i think the ideas a large part of them i agree with. should we rethink high school, absolutely. should we rethink how we educate people for jobs, absolutely. here is the difference. this is the most pro government speech since lyndon johnson. this was reversing bill clinton, the year of big government, and the line that is going to cripple the president coming out tonight is it will not add a dime. you can't take this laundry list and explain how you will do all of this and it is not going to

add a dime. >> he said it. defend the president. did he say -- >> yeah, he did. the reason why it is going to be deficit neutral is because congress will have to cooperate on making sure it doesn't add a dime to the deficit. that means that there has to be some cooperation in making sure these things, that this is not, you do not grow the economy by cutting. you grow the economy by smart investing. it is not about big government. it is about smart government and he talked about public/private partnerships for building of roads. >> my daughters used to have a great plan to go to disney world that would not cost a penny and if we saved all of our bottle tops we could go to disney world almost for free except for the amount on the credit card. >> he didn't say for free. >> it is a big issue, though, because i will open it up to the idea for everybody here. you know you're at the ceiling, there is going to be a big part of the debate. do we extend the ceiling. have you a trillion dollar deficit but you say you will be

budget neutral. seems to not add up to people. seems we have to start paying down debt as opposed to staying neutral. is it enough to be neutral? that's the question. >> the president was talking about entitlement reform. he is talking about we can't be governed by the deficit because we have to invest in our future. >> sounds like you're not going to pay it down, then. >> he also said, you know, i want to figure out a way to do this and do tax reform at the same time. >> and so you will raise taxes to pay for what you're doing, is that what he is saying? >> you're going to get rid of loopholes, et cetera. >> help me with that. tell me, closing loopholes is always a great answer. does that make sense? can that be done? >> it makes sense and there are a number of proposals in the congress since speaker gingrich's days of proposals and

not if it brings more money to washington. the president says duke that and it will bring more money. >> if you close the loophole and it will wind upbringing money in, where is it supposed to go. >> the reagan argument is close the loophole and lower the rates. the president wants the money. look, he is legitimately a liberal. he wants the money. he believes in big government and he just got a bunch of money out of the republicans and he is back saying now i want more money because that wasn't the money i really wanted. >> i agree with that. there is much about this speech i agree with as well. i thought that many of the ideas were very, very sound, especially on most of education. i do think you have to appreciate the fact that he is in retreat from what he basically argued early in the administration about bringing the deficits and the debt under control. what simpson-bowles argued was and what he embraced simple on bowls and talked about it and simp

simpson-bowles talked about taking it down over the next ten years. that's where he was going. now he said no, no, we're just going to hold it even. he has come a long way. he is really falling far below the original goal. >> hold on. we have to get back to wolf. the discussion will continue. wolf, back to you. >> we heard from the president of the united states. we're about to hear from a rising star in the republican party, senator marco rubio of florida. he is going to be delivering the official republican response. he is doing it in english, a separate response will be done in spanish as well. clearly an effort to bring hispanic support into the republican party. set the scene. jake is on capitol hill. this will be an important address for the florida senator, jake, and it is difficult to do it after what the president has done. >> that's right. it is always a thankless task for anyone to give the response to the president of the united states but it is interesting, marco rubio, the senator from florida who will be giving the republican response